Title
Supreme Court
Indiana Aerospace University vs. Commission on Higher Education
Case
G.R. No. 139371
Decision Date
Apr 4, 2001
Indiana Aerospace University challenged CHED's cease-and-desist order over "university" title usage; SC ruled RTC erred in default judgment, lifted injunction, and ordered trial continuation.

Case Summary (G.R. No. L-18238)

Applicable Law

The applicable law for this case is the 1987 Philippine Constitution as the decision was made post-1990, particularly focused on the rules and regulations governing educational institutions, as outlined in CHED Memorandum Order No. 48, series of 1996 and the pertinent provisions of the Rules of Court.

Background and Procedural History

The case before the Court arises from a Petition for Review on Certiorari, challenging the Court of Appeals' decision, which directed the RTC to cease from proceeding with a pending civil case against CHED, asserting that Petitioner had no cause of action for damages against the Respondent. The RTC's previous issuance of a Writ of Preliminary Injunction in favor of the Petitioner had allowed the school to continue operations under its contested name, which CHED alleged to be unauthorized.

Factual Summary

The controversy began when Dr. Reynaldo B. Vera, of CHED, questioned Indiana Aerospace University's status following its advertisement using the term "university." CHED conducted an investigation and issued a Cease and Desist Order, arguing that Petitioner had not complied with statutory requirements for university status. Despite appeals from the University, the CHED's order remained in effect, compelling the institution to revert to its authorized name.

Issues Presented

The central issues evaluated were: (1) the timeliness of the Petition for Certiorari filed by CHED, (2) the correct application of procedural rules regarding the default order against Respondent, (3) the validity of the Writ of Preliminary Injunction issued by the RTC, and (4) the appropriateness of dismissing the Complaint for Damages.

Decision on Timeliness of Certiorari

The Court found that CHED's Petition for Certiorari was timely filed as it was based on the December 9, 1998 default order rather than the earlier interlocutory orders. The date of receipt of this order commenced the period for appeals, thus complying with the rules regarding the timeline for filing certiorari actions.

Default Order and Its Validity

In assessing the RTC's declaration of CHED in default, the Court concluded that such a declaration was improper given that CHED had previously filed an Answer. The phasing and timing of filings indicated no intention of neglect on part of CHED, which ultimately required the default order to be set aside to allow CHED its right to present a defense.

On the Writ of Preliminary Injunction

The Court concurred with the Court of Appeals that the Writ of Preliminary Injunction issued to the University was wrongly granted. The evidence failed to establish a vested right for the Petitioner to operate as a university. The injunction would counter public interest and risk misleading students and parents regarding t

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